Subchapter A. Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas

28 TAC §9.1

Subchapter C. Texas Title Insurance Statistical Plan

28 TAC §9.401

The Commissioner of Insurance adopts amendments to §§9.1 and 9.401 which concern the adoption by reference of certain amendments to the
Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas (Basic Manual) and to the
Texas Title Insurance Statistical Plan (Statistical Plan). The amended sections are adopted with changes to the proposed text as published in the August 6, 2004 , issue of the
Texas Register (29 TexReg 7645). There are also changes to the Statistical Plan, which is adopted by reference.

The amendments to the Basic Manual adopt a new form T-37A, Immediately Available Funds Procedure Agreement (Agent Designation for Federally-insured Lender), to include a designated agent of a federally-insured lender as a party to an agreement that defines procedures to make funds immediately available among a financial institution, a title company, and a federally-insured lender. The adopted new form will accommodate mortgage lending practices involving warehouse lenders while providing safeguards that funds are available. In conjunction with the adopted new form, amendments have also been made to procedural rule P-27, Disbursement from Escrow or Trust Fund Accounts, to conform the language of this procedural rule for use with the new form. The amendments to the Statistical Plan update the codes and other reporting requirements that have occurred since the last two Texas Title Insurance Biennial hearings. Adopting new forms and updated codes and reporting requirements will facilitate the administration and regulation of title insurance in this state and provide for more efficient reporting of statistical data by title companies. The effective date of the sections as published in the proposal was October 1, 2004 ; the effective date of the sections has been changed to November 1, 2004 . The department has also made typographical changes to the text of §9.1, and in response to comments regarding statistical code 1230, has added a reference to Rate Rule R-5c to encompass this additional type of credit based on a previously issued policy.

The adopted amendment to §9.1 updates the date of the form and sections added to the Basic Manual. The adopted new form T-37A, Immediately Available Funds Procedure Agreement (Agent Designation for Federally-insured Lender), includes a designated agent of a federally-insured lender as a party to an agreement that defines procedures to make funds immediately available among a financial institution, a title company, and a federally-insured lender. The amendments to procedural rule P-27, Disbursement from Escrow or Trust Fund Accounts, conform the language of this procedural rule for use with the new form. The adopted amendment to §9.401 updates the date of the amended Statistical Plan. The amendments to the Statistical Plan update the codes and other reporting requirements that have occurred since the last two Texas Title Insurance Biennial hearings.

Comment: One commenter inquired about the code for a credit for a previously issued owner policy when issuing a new owner policy simultaneously with a mortgagee policy as represented by the conditions stated in Rate Rule R-5c. This rate rule provision was adopted in the last biennial hearing.

Agency Response: The department agrees that this rate rule credit resulting from the last biennial hearing should be included in the Statistical Plan and has added the reference to R-5c under the code 1230, which represents these types of credits on simultaneously issued policies.

Comment: One commenter submitted various changes to the Statistical Plan in response to the Notice of Call for Issues Related to the 2004 Biennial Title Hearing. Some of the changes concern deletion of items currently in the Statistical Plan and other changes would result from proceedings in the biennial hearing.

Agency Response: The department believes that the totality of the commenter´s suggested changes would be more efficiently reviewed as part of the biennial hearing process and will consider those changes at that time.

NAMES OF THOSE COMMENTING FOR AND AGAINST THE SECTIONS .

For with changes: Software company; Southern Title Insurance Corporation.

The amended sections are adopted under the Insurance Code Articles 9.07 and 9.21, and §36.001. Article 9.07 authorizes and requires the commissioner to promulgate or approve rules and policy forms of title insurance and otherwise to provide for the regulation of the business of title insurance. Article 9.21 authorizes the commissioner to promulgate and enforce rules prescribing underwriting standards and practices, and to promulgate and enforce all other rules necessary to accomplish the purposes of Chapter 9, concerning regulation of title insurance. Section 36.001 of the Insurance Code provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

Subchapter A. Basic Manual of Rules, Rates and Forms

for the Writing of Title Insurance in the State ofTexas

§9.1. Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas . The Texas Department of Insurance adopts by reference the
Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State ofTexas as amended effective November 1, 2004 . The document is available from and on file at the Texas Department of Insurance, Title Division, Mail Code 106-2T, 333 Guadalupe Street , Austin , Texas 78701-1998 .

Subchapter C.TexasTitle Insurance Statistical Plan

§9.401. Texas Title Insurance Statistical Plan. The Texas Department of Insurance adopts by reference the rules contained in the
Texas Title Insurance Statistical Plan as amended effective November 1, 2004 . This document is published by the Texas Department of Insurance and is available from the Property and Casualty Data Services Division, Mail Code 105-5D, Texas Department of Insurance, William P. Hobby, Jr. State Office Building, 333 Guadalupe Street, P.O. Box 149104 , Austin , Texas 78714-9104 .